These red things sound like roundworm larvae to me. I have a terrible roundworm infestation and have been doing alot of research. I've seen pictures of those, and they are identical to what I have been passing. The larvae is about 1/2 inch long, bright red, and looks like a minature bell pepper. I also thought these were worms at first. Keep doing what your doing, and you'll start seeing the adults come out!